This is probably one of the biggest misconceptions that a lot of consumers have about getting approved for a loan and ultimately the biggest reason why so many potential buyers remain on the fence about jumping off and doing what they need to do in order to buy a home.
I talk to people every week who want very much to quit renting and buy their own home but they are so afraid of taking that first step – contacting a lender to see what they qualify for! They have heard from so many – their friends and family and even the media about how only those with perfect credit can qualify for a loan. They know that their credit isn’t perfect because of some issues they have had in the past with some of their creditors.

The odd thing about so many of these folks is that they have never actually seen and/or pulled their own credit report so they really have no idea what their credit scores are or what is actually being reported on them. Professionally, I have found that many of these folks actually fear the worst when the reality isn’t the worst and in some cases, nowhere near as bad as they suspected.
Simply pulling a credit report for many of these folks and explaining to them that they indeed have some loan options available to them has more times than not relieved the person of so much anxiety and fear associated with that whole process. One such prospect even recently told me that when I told them they were a good candidate for a particular kind of loan program, they said it was like when they got hired for their job that they really wanted and had interviewed for three times before they got it.
I love it when clients tell me things like that, it’s such a constant reminder of why I continue to do what I do and why I love working with my little low-medium income buyers who are mostly first time buyers. These folks generally know little to nothing about buying a home and getting pre-approved and so many are actually afraid to start the process for fear of not being able to qualify for a loan and having past mistakes being rubbed in their face.

Even in spite of all the info available to them on the internet and in spite of all the research these folks do, so many of them are scared out of their mind of taking that first step of talking to a lender and finding out what their options are.
For me, getting these folks through that first step is all about educating them on the realities of getting pre-approved as well as the loan process. This is when I have the opportunity to dispel a lot of crap they hear from other people like their friends and family and especially the media.
In regards to my most recent client, while they did have some derogatory issues with school loans a few years ago, they did eventually resolve them and have been in good standing for a couple of years now. While their scores were not the best scores I’ve ever seen, they most certainly weren’t the worst scores either; quite frankly, they’re actually pretty average.
I did ask them to provide me with a letter of explanation (LOE) about why they became delinquent with their school loans for a period of time. They will also have to pay off a recent collection account from a previous creditor that they have been refusing to pay because of “principle”. I simply informed them of how an underwriter would be reviewing their “principles” and explained to them that in some cases we (mature, responsible adults who want to buy a home) have to swallow our pride in order to achieve a greater goal. In this case, suck it up, pay the bleeping bill so you can buy a house.
Buying a home is one of the most important decisions someone can make. Today's lending environment can be really scary, which is why it's important to get as much information as possible before starting the process. The pre-approval process is not a simple process and it's because it can get really complicated and convoluted, that borrowers today need affordable loan options that are best suited for their own needs.
For more info on how you can qualify for a mortgage loan, contact me, Donne Knudsen of C2 Financial Corp, at 805.2069123 or donne4loans@earthlink.net.
What Kind of First Time Buyer Programs are Available in Los Angeles & Ventura Counties? FAQ - #1
What kind of property can I buy? FAQ - #2
What Kind of Paperwork Do You Need to Pre-Approve Me? FAQ - #3
What Kinds of Things Can Go Wrong in the Loan Process? FAQ - #5
What are Impound Accounts & Why Do I Need to Have Them in Order to Close My Loan? FAQ - #6
Can You Help Me Get My Kid Get Out of My House? FAQ - #7
I'm Supposed to be Closing Next Week Can You Help Me? FAQ - #8
If I Buy a Duplex, Can I Apply the Tenants Rent Towards My Mortgage? FAQ #9
What Happens if My Appraisal Comes in Low? - FAQ #10
What is a HomePath Property and How Can I Buy One? - FAQ #11
Are There Still Loan Programs Where I Don't Have to Put Anything Down? - FAQ #13
Photos courtesy of flickr: icy66 mikezenero milkham lindes jpersons giacomomacis
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Donne Knudsen
Realtor® - CalState Realty Services
DRE#: 01364050 / NMLS#: 249822
805.2069123
Serving low-medium income individuals and families as well as first time buyers with both their real estate as well as their mortgage needs including down payment assistance
Los Angeles County -- Ventura County
© 2010 - All Rights Reserved


Buying a home is one of the most important decisions someone can make.
Being that I am waiting for my first appraisal since the changes went into effect, I thought it best to look into these changes to find out how they are going to affect my borrower's appraisal, especially since I have some grave concerns about the condition of this particular property my borrower is in contract to purchase. 

Just recently, I spoke with someone who was getting a lot of grief from their big, national, retail bank about their 60+hr work week at more than one job. In the last few years, this has become a common problem for many "job jugglers" who need to be able to use all of their income for qualifying purposes. 








Choosing Your In-Laws, Brother's, Half sister's, cousin for your realtor is
These types of buyers have many challenges in finding suitable and eligible properties to purchase. Because our market here in Los Angeles & Ventura counties is absolutely saturated with run-down, dilapidated, dumpy REO's, many of these properties are simply not suitable because their condition disqualifies them for financing.
First and foremost, scenario A is just downright dishonest and unethical. Realtors and agents are bound by rules, regulations and codes
I recently came across
Most lenders are requiring at least six comps: 3-solds, 2-pendings and 1-active (or some similar guideline) and so often, I am seeing the AMC's appraisers are choosing the six lowest comps regardless of what the other comps are. 
There is no such thing as a "golden buyer" these days unless, of course, they have a ton of money that can be
The biggest issue I see with many of my referrals and prospects these days are they're self-employed people and while it is true that they make a lot of money, the fact that they write off a ton of it generally makes them unable to qualify for a loan.
Lastly, while it's great that not only have these folks been able to establish and manage a successful business but they've also been able to maintain phenomenal fico scores in process. BRAVO!!! WHO HOO!!! HALLELUJAH!!!
Buying a home is one of the most important decisions someone can make. Today's real estate market can be really scary, which is why it's important to get as much info as possible before starting your search. The home buying process is not a simple process and it's because it can get really complicated and convoluted, that borrowers today need affordable loan options that are best suited for their own needs.
I am so glad to hear that something is finally being down about this matter. This is such a huge problem here in Los Angeles county as well as in Ventura county too. Frankly, I would like to see more city and county municipalities take similar action against all bank sellers and their representatives for their failure to maintain their REO properties to minimum building code standards.
I recently came across,
So, time after time after time after time, my borrowers kept getting outbid by other buyers. For my borrowers, the bidding "wars" were fierce and my borrowers were continuously battered and beaten during these battles and often left for dead (ie. not even considered).
So when I read about how buyers are out for blood these days, I must admit, it all sounds somewhat foreign to me. While I do know that those types of buyers do exist, my own Realtor friends here in Los Angeles & Ventura counties tell me stories of these types of buyers. To some degree, stories like this make me appreciate and respect my own buyers so much more.
Today's real estate market can be really scary, which is why it's important to get as much information as possible before starting your search. The home buying process is not a simple process and it's because it can get really complicated and convoluted, that buyers need to work with professionals who can help them through the home buying process. 
Furthermore, most of these worthless letters from the big, national, retail banks provide no contact info on them in order for the listing agent (or even you or your buyer agent) to be able to actually talk to someone about the status of your application. This does nothing to strengthen your offer, quite the contrary; it actually weakens your offer with a seller and their listing agent.
So, if your strategy is to lowball a bunch of dumps in an effort to get a "good deal", you may as well just continue renting (or living with your parents if that's the case) because you don't have a chance in the world around here against a cash offer.
Lastly, as I mentioned in the article, many financed buyers, especially here in Los Angeles & Ventura counties, need to be patient. Chances are they are probably going to lose a few offers and properties before they actually get one accepted, even if they are making serious offers on nice properties. Around here, there is a lot of competition for the nice properties and the ones that are priced right go
Today's real estate market can be really scary, which is why it's important to get as much information as possible before starting your search. The home buying process is not a simple process and it's because it can get really complicated and convoluted, that borrowers today need affordable loan options that are best suited for their own needs. 
It's because of the disadvantages of this program for these properties that I strongly suggest any buyer considering the purchase of a HomePath property with a HomePath loan to get a home inspection done.
Once again, I strongly suggest that before making an offer on a HomePath property, buyers still need to have their Realtors/agent run the recent comps for the area to determine what the fair market value is for the home.
Buying a home is one of the most important decisions someone can make. Today's real estate market can be really scary, which is why it's important to get as much information as possible before starting your search. The home buying process is not a simple process and it's because it can get really complicated and convoluted, that borrowers today need affordable loan options that are best suited for their own needs. 
OPTION 2
However, in order to successfully appeal an appraisal, the buyer and their MLO need to have some really strong and compelling documentation supporting a higher value for the subject property. By working with the Realtors/agents in the transactions to obtain documentation to support a higher value, the appraisal review board can request that the appraiser take into consideration the supporting documentation in order to revise the property value. 
Yesterday, I blogged about
As I mentioned in
There may be other options but these are the three that I have actual professional experience with in serving by borrowers here in Los Angeles & Ventura counties. Today's real estate market can be really scary, which is why it's important to get as much information as possible before starting your search.
.
However, even if I don't get the chance to become the one that saved the deal, I may have had the opportunity to shine by being the one who finally explained the problem to them and/or the one who offered a viable resolution. Many of these people just appreciated that I took the time to hear them out, let them vent and then actually provided them with some helpful info or some valuable lesson before we parted ways.
Lastly, there are some transactions that were simply doomed from the start. There are some people who couldn't get a loan if they were the last people on earth. Why any licensed MLO with half a brain would even take an app on these people is just plain stupid.
I Part 2, I would like to discuss another issue that comes up that so many sellers and their listing agents (LA) as well as buyers fail to do before getting into escrow. In failing to do their own due diligence, they leave it up to MLO's and lenders to do everyone else's due diligence for them. While I can't speak for other MLO's and lenders, I can say that me and my lenders will be doing our jobs (and we're
Here in CA, we have a document called the seller
For the record REO sellers & LA
Today's real estate market can be really scary, which is why it's important to get as much information as possible before starting your search and definitely before submitting offers on anything you are interested in buying.
I felt that it just painted the lender as the proverbial "deal breaker" when in fact that is typically
The real "deal breaker" in many transactions is the condition that so many properties on the market are in. Here in Los Angeles & Ventura counties, so many properties are run-down and dilapidated REO properties where the bank simply refuses to make any repairs and/or concessions in order to sell the property.
Today's real estate market can be really scary, which is why it's important to get as much information as possible before starting your search and definitely before submitting offers on anything you are interested in buying. 
One of the biggest complaints I hear from parents is, "it's my money to do what I want with so what do you care where it came from?" Good grief, if it were that simply folks, do you think I would even be blogging about it now? Let me say this again (just in case I didn't make my point the first time), "every single cent that is used to buy a home must be documented and verified".
Parents who become n/o/cb will have to provide all the same documentation that their kids provide and parents will have to go through the same underwriting scrutiny as well. Now, you may be thinking right about now, why would some parents even consider this option when they have the whole gift option.